Marshal Lion Group wants to use blockchain technology to revolutionise the non-bank lending market.
The Polish company is an established player in the market, with several years in the field. Now, it’s planning to launch a blockchain-based platform where investors large and small can access more business opportunities.
Blockchain has the power to change the way companies and investors collaborate in the non-bank lending market. The technology is faster, cheaper, and also adds transparency where desired. It’s a cost-effective way of overcoming burdensome challenges such as third-party interventions, unwanted intermediaries, and time-consuming processes.
A blockchain-based digital platform for loans
The new network is designed to help Marshal Lion Group to facilitate collaboration between borrowers, lenders, businesses and investors. By using blockchain technology, the company plans to speed up the process of taking out loans and help more companies get the funds they need to grow.
The traditional non-bank lending market is slow, due to a series of legal obstacles, exacerbated by long processing times for loan requests. New companies often struggle to get loans because they have no credit history in the market. They often have to provide collateral or a written guarantee.
Either way, they’re looking at a long wait that includes many institutions, and tonnes of documents, and formalities. On top of that, parties often lose files and information along the way, which can reduce a company’s chance of getting the funds.
A decentralised ledger could change everything, starting with eliminating third parties from the process. Not only is the blockchain more transparent, but it’s also cheaper and faster than traditional lending procedures.
Companies and investors wouldn’t even have to meet to close a deal, and there’s no need for negotiations. Any business will be able to use blockchain to access the capital they need to fuel their projects.
The tokenisation of the non-bank lending market
Marshal Lion Group is planning to use tokens to power its blockchain-based digital platform. The digital assets will be used to streamline the processes in the lending market by reducing the parties involved in the process to only three: the platform, the lender, and the borrower.
Investors will have the chance to buy Marshal Lion tokens by participating in an Initial Exchange Offering (IEO). Owners can then use these tokens to invest in Marshal Lion products (loans) or the company itself.
Investors who buy tokens can purchase further access to the company’s products and services. All transactions are recorded in real-time in a decentralised database for increased transparency.
Marshal Lion Group will issue 120 million tokens at an initial price of $0,25 for a total value of $30 million. The minimum goal is set at 400,000 tokens. All transactions will be performed using smart contracts.
How the Marshal Lion Group token will work
The platform tokenises investors’ money. Lenders buy tokens at an initial price and then can resell them at the market price. The funds raised from selling tokens are then used to finance companies that need cash to kick start projects.
So, the Marshal Lion Group token (MLGC) is based on the actual value of the products that the company makes available on the platform. Among the elements that will contribute to adding value to the token will be the type of loans available and the forecasted interest revenues.
Of the profits, 50% are distributed to token owners as rewards (the rest goes to the platform). The return rates will vary with every project, depending on the maturity date of the loan and the client’s business abilities.
Token owners don’t automatically hold titles to the loans provided through the digital platform though. That’s because they don’t lend value directly to the borrower, but buy products based on non-bank loans instead.
The Marshal Lion token can also has the potential to hold value outside the dedicated platform, in secondary markets like cryptocurrency exchanges. So, token owners could trade their assets like any other cryptocurrency.
Marshal Lion Group will issue tokens using the ERC-20 standard, which provides additional security throughout the entire process. The ERC-20 standard includes a series of technical specifications that regulate how owners can use tokens and ensure all digital assets are traceable.
The Marshal Lion Group IEO is scheduled for the last day of October.